ENG 333 Communication for Science and Research

Jamie Larsen, Instructor

Budgets & Conclusions

Budget and conclusion sections interest the majority of readers of any proposals. These sections have differing purposes, but they both stress the importance of a proposal on a specific, monetary basis, as well as the more global goals that readers may have. These two detailed sections are usually created towards the end of proposal writing, and they set up the important information that will need to be included in the Abstract, or Executive Summary, that will preface the entire document.

Budgets

Most Request for Proposals (RFPs) contain detailed instructions and requirements of how to break down projected costs. Of course, you will follow the guidelines that are provided. However, you can start the budgeting process by dividing your costs into broad categories. The following is a suggested list of items that are typically included in most budgets:

• Management
• Labor
• Facilities and Equipment
• Materials
• Travel
• Communication and Advertising
• Profit

Management

This is a fixed cost and is usually calculated on the percentage of time that this personnel will devote to the proposed project. Benefits, training, and outside consultants are also included in this category. Many RFPs require a section for resumes to justify this part of the budget.

Labor

Labor costs can be divided into direct, and indirect laborers. Direct laborers are paid on an hourly basis, and can include fringe benefits, such as insurance, vacations, sick leave, and retirement. Indirect laborers are the people who support direct laborers. This category can include supervisors, janitors, and clerical support.

Facilities and Equipment

This category includes fixed and semi-variable costs of the building and machinery that will be used, bought, or leased. These costs often need to be negotiated with clients since issues, such as ownership of equipment, and depreciation of pre-existing facilities, can affect this amount.

Materials

Direct materials include items that will make up the products or services that are being provided. Indirect materials are those that are used to turn direct materials into the final product. These can include cleaning supplies, lubricants for equipment, paper, pens, etc.

Travel

This cost is often hard to estimate since this can vary from rates to need. Basing this amount on prior proposals' costs for this category is a good idea.

Communication and Advertising

Often, these are hidden costs that include phone calls, faxes, postage and internet provider fees. Advertising is easier to estimate and needs to be assessed based on what your client's business already provides in this area for its products.

Profit

Profit is essential for your company. In budgets, this can be handled in two ways: non-itemized, and itemized. Non-itemized profit is factored into your product costs. Itemized profit is listed as a separate line item in the budget. Your company's confidentiality policies may affect how this is listed in a proposal.

Always be sure that your numbers add up correctly. This is an essential part of your "ethos" or credibility in any proposal, or argument.

Conclusions

This section is a reflection of your introduction and should focus on restating the main point of the proposal, and the importance of the subject to your readers. A good conclusion should include the following:

• Transition from the body of the proposal - use active subheadings or wording (e.g., Our Recommendations, "In summary,...")
• State the costs of the plan - state the bottom line cost, and if needed, a mini-breakdown of the major, itemized costs
• Highlight the benefits of the plan - include hard benefits (deliverables), soft benefits (quality), and value benefits (standards)
• Look to the future - state long-term advantages or results
• Identify the next step - tell the reader what needs to be done to implement the proposal